01.11.10

Four out of Ten Planning to Work on Past State Pension Age

A new survey finds that four out of ten (41 per cent) employees now plan to work beyond the state pension age and that nearly half  (44 per cent) are against the current right of employers to retire employees once they reach their 65th birthday.

The survey of 2,000 people was conducted by the Chartered Institute for Personnel and Development (CIPD) to help inform its  inform response to the Government’s consultation on plans to phase out the Default Retirement Age (DRA) by October 2011.

Older workers were significantly more likely to disagree with the DRA than younger workers, with nearly six in ten (56 per cent) of those aged 55 and above disagreeing with it, compared to 35 per cent of 18-24 year olds.

Among those employees planning to work beyond the state pension age, nearly three quarters (72 per cent) cited financial reasons, nearly half (47 per cent) wanted  to continue using their skills and experience,  41 per cent wanted the benefit coming from social interaction in the workplace and just over a third (34 per cent) wanted to continue working for issues to do with maintaining their self-esteem.

Commenting on the survey, Dianah Worman of the CIPD said:

“The survey results show support from UK workers for the action the Government is taking to phase out the DRA. Its removal will put employers in a strong position to access a wider pool of mature talent. It will build on the beneficial experiences of UK employers who have already abandoned compulsory retirement ages.

“There are clear business benefits to employing a workforce that is age diverse and reflects organisations’ customer profiles. Employers that already operate without a formal retirement age report that older workers typically have a great rapport with customers, as well as a conscientious attitude and real enthusiasm for the job.

”The CIPD, however, warns that employers will need to make sure their people management policies and practices are in mint condition to manage an increasingly age diverse workforce….. If employers drag their heels in getting to grips with an ageing population and the associated 21st century people management challenges, they will fall behind more progressive competitors in sustaining business performance.

“The CIPD anticipates that many mature employees will reach a point when they decide to stop working altogether and resign voluntarily after the DRA has been abolished. But employers will need to make sure that any dismissals they have to make are conducted fairly and that they do not behave in a way that is age discriminatory.”

 

 

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